Fission Uranium Corp (TSX:FCU, OTCQX:FCUUF, FRANKFURT:2FU) announced results from four holes at its PLS property, host to the Triple R deposit, in Canada’s Athabasca Basin region: two holes drilled on the R840W zone, one drilled on the R780E zone and one on the R1620E zone. Of key importance, hole PLS16-479 (line 960W), a 45m step out to the west of the fast-growing, shallow and high-grade R840W zone, has hit 41.0m total composite mineralization, including 4.79m of total composite >10,000 cps. All four holes were mineralized.
Drilling Highlights Include:
R1620E Zone
Ross McElroy, President, COO, and Chief Geologist for Fission, commented:
With yet another successful 45m step-out, the R840W zone is growing rapidly to the west. This bodes well for the eventual size of this high-grade, near-surface zone as well as for the continued blue sky exploration potential of PLS and speaks volumes for the skill of our technical team.
Click here to view the full press release.
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Oakridge Global Energy Solutions (OTCMKTS:OGES) in its revenue guidance announcement for Q1, FY2016, to announce the first ever commercial revenues in the history of the Company.
As quoted in the press release:
Oakridge Global Energy Solutions has fully completed its transition, begun in July 1, 2014 and continued through to December 31, 2015, from a Research and Development company to a fully-fledged “Made in USA”, lithium ion battery manufacturing company. After spending more than $40M USD in research, product development and corporate restructuring since the Company’s major shareholder, Precept Fund Management SPC took control of the company in mid-2013, Oakridge kicked off 2016 in full commercial production ramp up mode.
Completing the restructure of the Company into a fully commercial manufacturing and production enterprise from a zero base has not been without the usual production start-up hurdles, but the Company is now pleased to offer revenue guidance for the first quarter of fiscal year 2016, with forecast revenue for Q1, 2016 of USD$250,000. Oakridge utilizes the standard calendar year as its fiscal year and the first quarter for Oakridge runs from January 1 to March 31.
While the Q1, 2016 revenues will still see a net loss for that quarter, the fact that the Company is now in full commercial production ramp up to meet customer demand for its carefully thought through product offerings, means that this announcement of the first ever commercial production and revenues by the Company is one of the most significant steps forward in the entire history of OGES since its inception almost 20 years ago, and the Company forecasts to be in a break even financial position by the end of Q2, 2016, as the commercial production ramp up and shipping of product to customers continues from now on.
Oakridge Executive Chairman and CEO, Steve Barber, stated:
We started 2016 as a new year with a full commercial production and customer focus. We are excited to announce that we have now begun routinely shipping our ground breaking lithium ion batteries to the golf car market, the motorcycle market, and a number of very significant custom or semi-custom markets. These results are nothing short of game-changing for the Company, which has never previously, in all its past history, shipped commercial product of any kind, and the entire team is working together as a highly-focused production machine, with the company now on a permanent, routine commercial production footing. We are very proud of every member of the excellent team which we have assembled during the preparation for this move towards permanent commercial production.
We would also like to thank the city of Palm Bay, the Space Coast Economic Development Committee, and the Florida Governor’s office for all their support and encouragement while we completed the difficult transition from research to production. Gregory Wiener and his team at the Space Coast EDC, Palm Bay Mayor Capote, County Commissioner and Director Economic Development and External Affairs for City of Palm Bay Andy Anderson, and Bayfront Community Redevelopment Agency Administrator James Marshal have all been very encouraging and supportive as we worked through the final issues on the way to this groundbreaking commercial production basis and routine shipping of commercial product to customers.
We now are in the gratifying position, based on all the hard planning work we have done, of having a growing range of excellent customers and a solid backlog of orders – we have lots of work remaining to fill those orders and are adding new customers to our list on a weekly basis, but this quarter is truly transformative for the Company.
We will have further exciting news as we move into Q2 as the Company is now on a very significant growth curve in the lithium battery space from this point onwards and we will not be looking back.
Connect with Oakridge Global Energy Solutions (OTCMKTS:OGES) to receive an Investor Presentation.
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Nevada Sunrise Gold Corporation (TSXV:NEV) announced that it has exercised its option to secure water rights in the Clayton Valley of Nevada by executing a definitive purchase agreement with an arms-length vendor. The pre-existing certificated water rights allow for 1,770 acre/feet of water use for mining and milling per year.
Nevada Sunrise President and CEO, Warren Stanyer, stated:
We are pleased to have completed the first step for the purchase of water rights in the Clayton Valley. The Clayton Valley Basin was recently ‘designated’ by the State of Nevada as requiring additional administration, and we believe the acquisition of water rights is paramount for future lithium brines development in the area.
Connect with Nevada Sunrise Gold Corporation (TSXV:NEV) to receive an Investor Presentation.
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Nevada Sunrise Gold Corporation (TSXV:NEV) announced that it has closed the first tranche of its non-brokered $504,000 private placement of 2,800,000 units at a price of $0.18 per Unit. Nevada Sunrise placed 1,135,833 Units in the first tranche of the Offering for gross proceeds of $204,450.
Proceeds from the Offering will be used to fund the exploration of the Company’s Nevada lithium and precious metals properties, and as general working capital.
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The Telegraph reported that an Algerian gas plant owned by BP (NYSE:BP) came under fire on Friday morning.
As quoted in the publication:
The In Salah Gas plant, which BP operates with Norway’s Statoil and Algeria’s Sonatrach, was hit by “explosive munitions” at 6am local time on Friday morning.
BP said its staff in Algeria have been accounted for and there are no injuries.
The operators said they have shut the gas processing plant as a safety precaution, and mobilised emergency response procedures.
Click here for the full press release.
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Macarthur Minerals (TSXV:MMS) announced that Rare Earth Minerals Plc (LSE:REM) has made a strategic investment in the company. Rare Earth Minerals has a number of strategic investments in lithium and rare earth element projects around the world.
As quoted in the press release:
Rare Earth Minerals has entered into a subscription agreement for 15,000,000 units (each, a “Unit”) at a price of CAD$0.02 per Unit (“Unit Price”) offered under the Company’s previously announced non- brokered private placement (the “Offering”) for aggregate gross proceeds of CAD$300,000. The Unit Price is equal to the closing price of the Company’s TSX Venture Exchange listed shares on February 3, 2016, the date the Company announced the Offering and to the Company’s closing price on March 16, 2016.
Each Unit shall be comprised of one common share in the capital of the Company (each, a “Common Share”) and one whole warrant to acquire a Common Share (each, a “Warrant”) at an exercise price of CAD$0.05 per Common Share for a period of twelve months from the date of issuance.
The Company has obtained approval from the TSX Venture Exchange to waive the CAD$0.05 minimum pricing requirement in accordance with TSX Venture Exchange bulletin dated April 7, 2014 “Discretionary Waivers of $0.05 Minimum Pricing Requirement“.
The closing of the Offering will occur after and subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange and the approval by the Foreign Investment Review Board (“FIRB”) in Australia, if required.
The net proceeds from the Offering will be used for working capital and to further advance the development of lithium exploration licenses, which are under application, in the eastern Pilbara region of Western Australia. These licenses were applied for as a result of the desktop review carried out by CSA Global. The securities issued pursuant to the Offering will be subject to a statutory 4 month plus one day hold period from the date of issuance.
Upon closing of the Offering, Rare Earth Minerals will own approximately 15.5% of the Company’s issued and outstanding shares on an undiluted basis.
Click here for the full press release.
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Gold sunk as low as $1,227.50 per ounce this week, but looks set to end Friday on a high note.
The yellow metal was boosted above $1,260 after the US Federal Reserve’s most recent meeting ended Wednesday, and while it’s fallen a little since then, it was still at a respectable $1,253.10 as of 2:00 p.m. EST on Friday.
Market participants were cheered following the Fed’s meeting because the central bank said it will leave the target range for the benchmark rate unchanged at 0.25 to 0.5 percent. The decision implies that economic growth in the US is weak, which is generally positive for gold.
It’s tough to say whether gold’s good fortune will continue, but the metal is now up just over 18 percent year-to-date.
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Updated December 2015
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For its part, silver performed much the same as gold this week. While it was lower at the beginning of the week, reaching a low point of $15.19 per ounce, it saw a boost after the Fed’s announcement, and as of 2:00 p.m. EST on Friday was trading at $15.82.
Silver bugs may be interested to note that HSBC (NYSE:HSBC) and Commerzbank (ETR:CBK) recently came forward to say that the white metal has been outperforming gold lately. Explaining why that’s significant, HSBC said a note, “[u]p to now, silver failed to keep up with the gold rally. Part of this may be due to producers streaming or selling silver forward to raise cash. This increase may have weighed on prices.”
The firm added, “[l]onger term, this may be positive because future production has already been sold. Also silver coin and bars are becoming increasingly competitive with gold coins and bars and may see greater demand.”
On the base metals side, copper also had a good week. It’s up about 17 percent since midway through January, and on Friday saw a 1-percent increase to $5,120.50 per tonne — that’s its highest price in four months, according to Reuters.
Finally, oil prices gained this week as well, particularly on Friday. The Wall Street Journal states that the US oil benchmark rose 1.9 percent on the NYMEX to reach $40.98 per barrel; the global Brent contract was up 1.9 percent as well, sitting at $42.33 on the ICE Futures Europe exchange.
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The news outlet states that prices were driven up by hopes that the world’s major oil producers, including non-OPEC countries, “will join a production freeze at January levels, with or without the cooperation of Iran.”
As Global Risk Management’s Michael Poulsen explained, “[t]he fact that the world’s largest oil producers, Saudi Arabia and Russia will participate adds weight to the meeting even if Iran has announced it will not be present or part of the deal.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Related reading:
Weekly Round-Up: 13-month High for Gold Price
Weekly Round-Up: Gold Enters Bull Market Territory
Weekly Round-Up: Buy Gold Now, Says Deutsche Bank
Weekly Round-Up: Gold Price Still Has Momentum
Weekly Round-Up: Gold Makes a Comeback
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In a recent interview with Epstein Research capital markets veteran Ron Loewen highlighted Nevada Energy Metals (TSXV:BFF).
As quoted in the interview:
I like Nevada Energy Metals(TSX-V: BFF) (OTC Pink: SSMLF) (Frankfurt: A2AFBV) another company I have made a large investment in along with my associates. The company recently acquired and joint-ventured excellent Lithium targets, in close proximity to Albermarle’s Silver Peak mine, the only brine based Lithium producer in North America.
Nevada Energy Metals is now focusing on Lithium exploration targets in Nevada, home of the soon to be completed Tesla Motors giga-factory, Silver Peak and previously mentioned Pure Energy.
Nevada Energy Metals see themselves as a project generator — an incubator of lithium assets. Companies like Lithium X are doing the same. Although Lithium X recently moved into Argentina, which I think is a good play, for now it looks like Nevada Energy Metals is sticking with Nevada. Management feels there’s still ample room to pick up promising targets. After assisting the company in raising over $900,000 and introducing them to key individuals and groups, I can say that in my opinion, Nevada Energy Metals is just getting started. They may be new to Lithium, but they have the right people who understand how to locate and explore targets, not to mention, raise money.
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We recently took an important step for the development of our economy, and therefore of all the country. President Michelle Bachelet’s announcement about the lithium policy and governance of the salt lake offers a proactive look towards innovation and the diversification of our natural resources and control over a non-metallic mineral that is part of the state of Chile.
As a mining country, we understand that lithium, like molybdenum and potassium, is a mineral that has invaluable potential in the technology industry, in new applications and uses. That’s how we are promoting the added value that it grants our mining industry, and in the medium and long term it means keeping the consolidation of Chile as a world leader in this economic sector.
A central conclusion from the National Commission of Lithium was that to develop a policy for this strategic resource, we should look at the salt lake as a whole, including both environmental and social aspects. This concept is chained to our culture of developing mines with increasing consistency — clearly, as a nation we aspire to go beyond mere extraction and export of resources. So, the project promotes the creation and strengthening of a sector cluster that will allow us to implement research and innovation in universities and industry. It is a global and inclusive concept.
Our experience in the last years indicates that we have the capacity to improve toward productive diversification — namely, to transform the capital derived from non-renewable resources into human capital, education and training, physical and social infrastructure, innovation and technological development, all that helps harmonize economic growth with environmental protection.
The responsibility we have taken is a statement facing future generations, a heritage that reflects the excellence of the mining industry and the collective spirit that strengthens a country. That’s why the state and the private sector must work together so that industry results are extended to the whole Chilean society. Undoubtedly, we are marking a milestone where we open a new opportunity for Chile and its people.
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Platts reported that the Roc discovery in Western Australia’s Canning Basin is estimated to hold 372 Bcf of gas and 18 million barrels of condensate. Carnarvon Petroleum, which owns 20 percent of the deposit, said that the discovery is being eyed for development.
As quoted in the press release:
The field contains additional prospective resources of 328 Bcf of gas and 16 million barrels of condensate, at the high estimate, according to assessment of results from the Roc-1 well.
Roc-1 was drilled as a follow-up to the Phoenix South oil discovery, made in late 2014 and hailed at the time as opening up a new offshore petroleum province.
Carnarvon holds 20% of the Phoenix permit, which is operated and 40% owned by Quadrant Energy, 20% by Japan’s JX Nippon and 20% by Finder Exploration.
Click here for the full article.
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The Week reported that oil prices hit a new high for 2016 on the back of news that the UK will ease taxes on the North Sea, steady interest rates from the US Federal Reserve, and news of a potential production freeze from OPEC and non-OPEC producers.
As quoted in the publication:
The oil price ended a two-day slide yesterday and hit a new 2016 high this morning, after a triple-whammy boost from the UK Budget, the US Federal Reserve and fresh optimism on a supply deal.
First came the news from George Osborne that the UK is easing taxes on the North Sea industry to help producers. “The chancellor halved a supplementary charge levied on offshore fields and completely abolished a 30 per cent petroleum revenue tax,” says The Guardian.
Click here for the full article.
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A recent report by Dundee Capital Markets highlighted Nemaska Lithium Inc. (TSXV:NMX,OTCQX:NMKEF) highlighted the company’s relationship with the Quebec government.
As quoted from the press release:
We urge investors to Buy Nemaska Lithium, our top Li pick. We maintain a C$1.00/sh target after incorporating the Cree investment, Ressources Quebec pricing (completed at $0.34/sh; we had assumed $0.40/sh), and lower dilution for future financings. Our target is based on a 0.7x multiple applied to our 10%DCF.
The Quebec Government is the latest institution to work diligently with NMX. It puts Plan Nord equity to work to help get the LiOH demo plant built. Local native communities are not only supportive, but are investing further to gain the benefit of getting in early, job training, employment and other business opportunities. The demo plant is now nearly fully financed. This plant will allow qualification, an important period of technical and financial de-risking. NMX should gain credibility with potential LiOH end users as construction nears and it can confirm a sample delivery schedule. With Cree support, RQ equity, and SDTC and QC grants; final signing of the Johnson Matthey deal should cover demo plant costs for three years: $38 MM Capex and $3 MM working cap.
We continue to recommend Nemaska. Whabouchi project is fully permitted; the deposit is high grade with low impurities with the necessary characteristics to produce a clean con; production of LiOH is planned directly from con with low reagents and waste; lithium macro is strong, with LiOH prices above ~US$8,000/t.
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Oakridge Global Energy Solutions (OTCMKTS:OGES) announce an upcoming Investors Conference Call on Tuesday March 22, 2016 at 2:00PM EST (11:00AM PST).
The Call-In Number is +1 712-775-7035
The Access Code for the Press Conference is 684304#
As quoted in the press release:
Oakridge Global Energy Solutions’ Executive Chairman and CEO Steve Barber will be expanding upon the Company’s recent press announcements. Steve will share more details of the recently announced Sojitz agreement and its significance and its enormous significance for the Company. He will explain what the new Sojitz agreement means to Oakridge and its shareholders and how the company will benefit. In addition, he will give information and updates on revenue forecasts for Q1, on the electric interstate truck project; the Daytona Beach Bike Fest and the release of the Liberty Series motorcycle battery, as well as updates on shipments of Company’s Pro Series golf car batteries.
Oakridge Global Energy Solutions Executive Chairman and CEO, Steve Barber, stated:
We started 2016 in full manufacturing mode and have continued to ramp up as the first quarter has progressed. We are currently shipping production product in the golf car and low speed electric vehicle markets; the radio controlled unmanned vehicles and drones markets; the motorcycle starter motor markets; and a number of very special custom applications. It is a very exciting time at Oakridge!
Connect with Oakridge Global Energy Solutions (OTCMKTS:OGES) to receive an Investor Presentation.
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Dajin Resources Corp. (TSXV:DJI,OTCMKTS:DJIFF) announced the appointment of Mark Coolbaugh, PhD, CPG to the Board of Directors.
As quoted in the press release:
Dr. Coolbaugh is a renowned metals and geothermal geologist with 30 years of project, research, and management experience in North and South America, Asia, and Europe. He currently holds senior positions with several exploration companies and is an adjunct research assistant professor at the Nevada Bureau of Mines and Geology, University of Nevada, Reno. His experience includes management of corporate and country-wide exploration programs, research and development of geothermal exploration tools and predictive models, assessment of geothermal and mineral projects, and construction of quantitative ore reserve models. He played an instrumental role in a number of green-fields geothermal and precious metal discoveries in North and South America and Asia. These discoveries include blind geothermal systems in Teels, Rhodes, and Columbus Marshes in southwestern Nevada. He is a certified professional geologist with the American Institute of Professional Geologists and he has published numerous reports on Nevada geology including detailed work in the Teels Marsh area.
Dr. Coolbaugh noted that he is looking forward to assisting Dajin advance their Lithium projects in Nevada and Argentina. The Lithium industry is looking for more good projects and I feel Dajin’s projects have great potential.
Connect with Dajin Resources Corp. (TSXV:DJI,OTCMKTS:DJIFF) to receive an Investor Kit.
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CBC News reported that OPEC member states will meet next month in Doha to discuss a potential freeze on oil output.
As quoted in the publication:
Oil prices reversed their downward trend of the last two days on the news and were up about three per cent in morning trading.
West Texas Intermediate, the benchmark North American contract, rose $1.10 US to $37.45 US a barrel. Brent crude, the main international contract, was up $11.11 at $39.45.
Click here for the full article.
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The Canadian Press reported that the British Columbia government has stated that natural gas resources in northeastern BC are much higher than first believed.
As quoted in the publication:
A report, published by the National Energy Board, focuses on the Liard Basin, a huge region of northeastern B.C., Yukon and Northwest Territories.
According to the report, 848 trillion cubic feet of natural gas lies under B.C.’s portion of the basin, up from the previous estimate of 210 trillion cubic feet.
A Ministry of Natural Gas Development release says that pushes the province’s total natural gas potential above 3,400 trillion cubic feet.
Click here for the full article.
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The Wall Street Journal reported that BHP Billiton (NYSE:BHP) is looking at acquisitions once again, now looking at deals for oil and copper assets.
As quoted in the publication:
In an interview with The Wall Street Journal, Mr. Mackenzie said BHP is sizing up deals for petroleum and copper assets that could offer an immediate boost to profits amid what it now expects to be a prolonged period of low commodity prices.
“We are very active in looking at areas where we might acquire assets that would fit very well within our portfolio and that would increase the scale of the company without increasing its complexity,” Mr. Mackenzie said.
The BHP boss was speaking after a difficult period for the company as it adapts to a plunge in prices for the main commodities it sells, including iron ore, oil and gas, and coal.
Click here for the full Wall Street Journal article.
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Updated December 2015
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A recent article in the Financial Review highlighted Ralph Sarich and his interest in Galaxy Resources Limited (ASX:GXY).
As quoted from the article:
Another emerging technology has also proved to be a good investment for Sarich when it comes to the sharemarket. Prices of lithium are forecast to keep increasing in the next few years, given it is a key ingredient in lithium-ion battery applications used in electric vehicles and other emerging technologies.
Sarich has a small shareholding in listed junior miner Galaxy Resources. Its market capitalisation has reached about $265 million and Galaxy shares have surged 740 per cent in the past 12 months.
Galaxy has lithium production facilities, mines and assets in Australia, Canada and Argentina. Production from its Mt Cattlin joint venture in Western Australia is set to begin this month.
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NexGen Energy Ltd. (TSXV:NXE,OTCQX:NXGEF) released results from nine angled drill holes completed as part of its ongoing 30,000-meter winter 2016 drill program at the Rook I property in Saskatchewan’s Athabasca Basin.
As quoted in the press release:
Hole AR-16-75, a step-out hole 170m to the southwest along strike from Arrow intersected 39.5 m of total composite mineralization in the A3 and A4 shears, confirming Arrow remains open in all directions and at depth. This hole has extended the total strike length of mineralization at Arrow from 670 m to 840 m.
In addition, within the higher grade A2 sub-zone (the “Sub-Zone”), three holes have intersected extensive visible uranium mineralization. Holes AR-16-74c1, -76c1 and -78c1 all encountered intense radioactivity in the Sub-Zone marked by dense accumulations of semi-massive to massive pitchblende. Highlighting these results is hole AR-16-76c1, which intersected 5.25 m of minimum-greater-than-61,000 cps radioactivity, 3.5 m of which was continuous.
Garrett Ainsworth, vice president, exploration and development at NexGen, commented:
As shown with this latest batch of results, closer spaced drilling within the Arrow deposit is confirming and exceeding our expectations in terms of continuity of grades and widths. Testing 170 m southwest of the Arrow deposit has opened up an exciting new strike extent that we plan on aggressively following up on.
Click here to read the full NexGen Energy Ltd. (TSXV:NXE,OTCQX:NXGEF) press release.
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Avalon Advanced Materials Inc. (TSX:AVL,OTCQX:AVLNF) (formerly Avalon Rare Metals Inc.) provided an industry bulletin highlighting lithium at PDAC 2016.
As quoted from the report:
At the 2016 Prospectors and Developers Association of Canada (“PDAC”) Convention, Trade Show and Investors Exchange in Toronto, Ontario, lithium shared the spotlight with gold as the commodities attracting the most interest from investors. In fact, a Tesla Motors Model S electric car powered by a lithium ion battery was on display in the Investors Exchange, reminding investors that electronic vehicles are creating much of the new demand for lithium.
The technical sessionentitled Speciality Minerals and Metals for Energy Storage, co-chaired by Avalon President & CEO, Don Bubar, attracted a standing-room-only crowd for two excellent overview presentations on the lithium ion battery supply chain by Simon Moores of Benchmark Minerals Intelligence and Jon Hykawy, President of Stormcrow Capital.
Highlights from Hykawy’s presentation can be found on Investing News network at http://investingnews.com/daily/resource-investing/energy-investing/lithium-investing/lithium-prices-jon-hykawy-stormcrow. Also presenting on lithium during the session were representatives of Nemaska Lithium Inc. and Western Lithium USA Corp. All presentations will be available for download on the PDAC website in next few weeks at http://www.pdac.ca/convention/programming/technical-program/sessions/technical-program/specialty-minerals-and-metals-for-energy-storage.
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Purepoint Uranium Group (TSXV:PTU.V) reported results from a further four holes drilled at the Spitfire Zone of its Hook Lake joint venture. Drilling has confirmed continuous uranium mineralization for at least 200 meters down-dip of a graphitic shear zone beginning just below the unconformity.
As quoted in the press release:
High-grade uranium mineralization is consistently seen in association with brittle structures crosscutting the shear zone. Purepoint is the operator of the Hook Lake project on behalf of its Joint Venture partners Cameco Corp. and AREVA Resources Canada Inc.
Highlights:
- Uranium mineralization is primarily associated with the upper contact of a graphitic/pyritic shear zone and a halo of moderate to intense clay alteration.
- High grade mineralization is associated with brecciation that occurs sub-parallel to but cross-cuts the graphitic shear zone.
- Highlights of the downhole gamma probe results are HK16-47 with 19.6 metres of 0.82% eU3O8 that includes 7.2 metres of 1.3% eU3O8 and HK16-52 with 18.5 metres of 0.68% eU3O8 that includes 4.3 metres of 2.6% eU3O8.
- The targeted graphitic shear zone remains open both along strike and to depth.
- Drilling is ongoing and is currently targeting the projected intersection of known brittle structures and the graphitic shear zone.
Purepoint VP of Exploration, Scott Frostad, said:
We are particularly encouraged by the thickness of mineralization where it is associated with cross-cutting structures. HK-16-47 is mineralized for over 30 metres within a 40 metre interval while HK-16-52 came back with over 18 metres of mineralization and both these intercepts are considered close to true width.
The continued expansion of Spitfire is helping us define the potential for yet another regional deposit. We are very excited at the prospect of what the remainder of this season may deliver.
Click here for the full press release.
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Nevada Energy Metals (TSXV:BFF) (OTC Pink:SSLMF) announced that it is implementing an online marketing and awareness program through AGORACOM.
As quoted from the press release:
The Company will receive significant exposure through millions of content brand insertions on the AGORACOM network and extensive search engine marketing over the next 12 months. In addition, exclusive sponsorships of invaluable digital properties such as AGORACOM TV, the AGORACOM home page and the AGORACOM Twitter account will serve to significantly raise the brand awareness of the Company among small cap investors.
Nevada Energy Metals Chairman and CEO, Harry Barr, stated:
I previously have had the pleasure of working with the AGORACOM team and they have proven to be a leader in their space. We are delighted to have retained their services to expand our online presence.
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Western Uranium Corporation (CSNX:WUC,OTC PINK:WSTRF) announced that common shares are now quoted in the United States on the OTC Pink Open Marketplace and trade under the ticker symbol ‘WSTRF’.
Western Uranium Director, President and CEO, George Glasier, stated:
The ability to trade our shares in the OTC market is an important milestone in the history of the Company as it allows US investors to more easily participate in investing in shares of Western Uranium. As previously announced, we intend to take steps needed to help develop the trading market for the Company’s shares in the United States.
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Nevada Sunrise Gold Corporation (TSXV:NEV) announced that it has amended the terms of its non-brokered private placement initially disclosed in a news release dated March 8, 2016. The Offering will now consist of up to 2,800,000 units at a price of $0.18 per Unit for gross proceeds of up to $504,000.
Proceeds from the Offering will be used to fund the exploration of the Company’s Nevada lithium and precious metals properties, and as general working capital.
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One of the main obstacles that has inhibited cleantech from becoming more mainstream is the issue of power generation and storage. Despite the numerous advantages of solar power, a key challenge in the sector is making sure that the power generated is both adequate and reliable.
For instance, if a building relies exclusively on solar photovoltaics for electricity, uncontrollable factors like a cloudy day can’t impact the technology’s ability to produce power.
That’s where the rapidly growing sector of energy storage systems comes in. Specifically, lithium-ion batteries offer a well established cleantech alternative to the typical backups of fossil-fuels and nuclear-based generation. However, lithium-ion batteries are relatively costly, which drives up the price of technologies reliant on this energy source. Luckily, companies like Electrovaya (TSXV:EFL), Nano One Materials (TSXV:NNO) and Oakridge Global Energy Solutions (OTCMKTS:OGES) are working to make lithium-ion batteries more accessible.
It seems that lithium-ion batteries are everywhere, and the battery chemistry is the fastest growing and most promising on the market today.
According to Battery University, lithium-ion batteries have numerous advantages: their high energy density opens the possibility of higher capacities, they do not need prolonged priming when new, they have relatively low self-discharge (less than half of nickel-based batteries), they are low maintenance and speciality cells can provide very high current to applications (a boon in cases such as power tools).
Of course, these batteries have drawbacks as well. Lithium-ion batteries require protection circuit to maintain voltage within safe limits, they are subject to ageing (even when not in use) and they are not fully mature (meaning that metals and chemicals are changing on a continual basis). However, what might be their largest limitation is the price. Currently, lithium-ion batteries cost about 40 percent higher than nickel-cadmium, making them an expensive option for cleantech companies.
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So, which are companies still willing to shell out for these batteries? Although the market for lithium-ion batteries spans many verticals, in the cleantech sector they are most strongly linked with the electric vehicle market. To meet market demand and to drive down pricing, EV companies are investing heavily in research and development in the lithium-ion space.
According to Cantech Letter, the lithium-ion battery market was worth $11.7 billion in 2012 and, by the end of this year, the market is supposed to have doubled. Within this market, global demand for EV batteries was 5,662MWh in 2013 and is expected to jump to 31,100MWh by 2016. The increased demand for lithium-ion batteries should ultimately push the price down, as companies invest in creating the most efficient technology possible.
For example, the battery subsidiary of German carmaker Daimler (FWB:DAI) is to begin construction on a new $544 million lithium-ion battery manufacturing facility in the third quarter of 2016. The factory is intended to product batteries for electric and hybrid Mercedes-Benz and smart cars, in addition to stationary storage products for customers. Dieter Zetsche, the chairman of the board of management of Daimler AG and head of Mercedes-Benz cars, explained the decision: “to get closer to fully electric driving, we keep investing big in the key component of emission-free vehicles: powerful batteries.”
Tesla (NASDAQ:TSLA) is another major leader in lithium-ion battery investing scene. Notably, Sophic Capital reports that, at the close of 2014, Tesla invested $5 billion in the creation of a new lithium-ion battery plant in Nevada. Tesla anticipates that this plant will will manufacture 50GWh of annual capacity by 2020 (enough for approximately 500,000 cares. Furthermore, CEO Elon Musk has stated that the plant could drive down lithium-ion battery costs by a full 30 percent through scale. Indeed, this reduction will be a boon for helping EVs compete with conventional fuel-based vehicles.
Batteries are such a priority for Tesla that the company announced a suite of new rechargeable batteries under the name Tesla Energy, in April of last year. At the time, the company released a statement that “Tesla is not just an automotive company, it’s an energy innovation company. Tesla Energy is a critical step in this mission to enable zero emission power generation.”
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If investing in this growing market seems appealing, there are several strong companies to choose from. Beyond Tesla, LG Chem (KRX:051915), Samsung SDI (KRX:006400) and Asahi Kasei (TYO:3407) are all major corporations involved in the market. However, there are also number of interesting small-cap up and comers for investors to look at.
Take Electrovaya, for example. The Canadian company is engaged in designing, developing and manufacturing Lithium-ion SuperPolymer batteries, battery systems and energy storage-related products has seen 33.8 percent year-to-date growth in its share price.
Meanwhile, Nano One Materials is engaged in developing processing technology for the production of high performance nano-structured composite materials. The company’s primary market is the cathode materials supply chain for lithium ion batteries. Its share price has gone up 15.25 percent since the start of the year, and the company was recently approved for a $2.08 million technology commercialization grant from Sustainable Development Technology Canada (SDTC).
Finally, Oakridge Global Energy Solutions is the only “Made in the USA” lithium-ion battery system producer, the company’s products are targeted to the golf cart, remote control and unmanned aerial vehicle markets, as well as the home energy storage markets. For its part, the company has seen a 58.92 percent growth in share price since the outset of 2016.
The increasing share prices for these companies reflects one common truth in the lithium-ion battery market: there is significant growth in this sector. Innovations in the space will help to reduce the cost of producing these batteries, helping environmentally friendly cars to become more competitive on the market.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Oakridge Global Energy Solutions is a client of the Investing News Network. This article is not paid for content.
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Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) reported its financial results for the year ended December 31, 2015.
As quoted in the press release:
Highlights:
- $61.35 million of total revenue, representing an increase of 33% over 2014.
- Gross Profit of $23.73 million from uranium recovery operations, representing an increase of 45% over 2014.
- 1,075,000 pounds of uranium sales at an average realized price of $56.43 per pound, representing an increase in pounds sold of 34% over 2014.
- 468,000 pounds of U3O8 recovered, representing an increase over previously published guidance.
- Strong balance sheet including $34.87 million of working capital at December 31, 2015.
- After year end, the Company completed an equity financing for net proceeds of $10.88 million after commissions and estimated expenses of the offering.
- Proposed acquisition of Mesteña Uranium, LLC expected to expand Energy Fuels’ lower-cost ISR scalability.
- Proposed acquisition of remaining 40% of Roca Honda Project expected to significantly increase Energy Fuels’ scalability and leverage to future increases in the price of uranium.
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German business and financial publication Handelsblatt reported on Tuesday that the European Commission is planning to call on European utility companies to make major investments in nuclear energy.
The commission is set to release a report on the state of the nuclear industry in coming weeks, and Handelsblatt was able to see the document in advance of its publication.
“[T]he Commission estimated that to secure energy supply across the 28-nation bloc, investments of between €450 billion and €500 billion are needed in nuclear power by 2050,” the publication stated. Of that, between 45 and 50 billion euros would go towards maintaining existing power stations. The remainder would be invested in building new plants
Rob Chang, managing director and head of metals and mining and Cantor Fitzgerald, was certainly positive on the news. “This will be very positive for uranium equities across the board and among producers,” he said in an emailed statement. Specifically, he cited Cameco (TSX:CCO) Ur-Energy (TSX:URE) and Uranium Energy Corp (NYSEMKT:UEC) as examples, “among others.”
Chang also mentioned that the news would be positive for uranium investment firm Uranium Participation Corp. (TSX:U).
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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International Lithium (TSXV:ILC.V) has entered an option agreement and strategic alliance with Pioneer Resources (ASX:PIO), under which Pioneer can earn up to an 80 percent interest in International Lithium’s Mavis Lake property.
As quoted in the press release:
- Pioneer will either pay CAN$65,000 cash to ILC or subject to TSXV approval, subscribe for $100,000 of units of ILC at a price of $0.08 per unit (as part of the recently announced financing ILC NR 2 March 2016) in exchange for an exclusive 90-day due diligence period.
- On electing to proceed, Pioneer may earn a 51% interest in the project by expending CAN$1.5 million on exploration activities within three years and paying to ILC a total of CAN$375,000 in cash and shares 50/50 over the same three years (the “First Earn-in”).
- Following the First Earn-in, ILC will be granted a 1.5% Net Smelter Return royalty (“NSR”), purchasable at any time for CAN$1.5 million.
- Pioneer will then be granted, if they choose, a Second Option where they can earn an additional 29% through expending CAN$8.5 million within seven years (total CAN$10 million over ten years). Thereafter the Parties will contribute on a pro-rata basis. If either Party dilutes to 15% Project Equity, their interest is converted to a 1.5% NSR.
International Lithium CEO, Gary Schellenberg, said:
This is the first step of our new strategy developed for North America. We see an escalating demand for lithium in North America, especially in the automotive sector with new sources being either many years away, or with logistic and metallurgical challenges. Our strategy for the Upper Canada region sees us advancing a multitude of smaller deposits that possess near perfect accessible infrastructure and that can supply a central lithium carbonate processing facility. Identifying smaller high-grade deposits within close proximity can greatly enhance the economics of a processing facility as well as allowing these smaller deposits to be mined at a greatly reduced CAPEX. We intend on bringing our strategy to reality through strategic partners, like Pioneer, that share our vision.
Click here for the full press release.
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Ultra Lithium (TSXV:ULI) reported that assay results from its December 2015 sampling program have indicated anomalous values of lithium, boron and potassium at its South Big Smokey Valley lithium project in Nevada.
As quoted in the press release:
- Maximum values for lithium in sediments is 100 ppm, boron 480 ppm, and potassium 7,600 ppm, whereas the average lithium concentration in all sediment samples is 47 ppm, boron 142 ppm, potassium 4,915 ppm, and magnesium 6,685 ppm.
- The results confirmed the presence of lithium in the South Big Smokey hydrogeological system. Of particular interest is the northeastern area, of geophysical survey lines C, D, E and F showing consistent anomalous values of lithium, boron, and potassium.
- The Property is part of an enclosed basin or playa which is considered a prerequisite for trapping of lithium in brines. The rocks on the southwestern part of the valley were observed to be dipping inwards to the basin and overall slope of the basin is to the southwest.
Ultra Lithium CEO, Dr. Weiguo Lang, said:
The present sampling work has not only confirmed the presence of lithium in sediments of the South Big Smokey Valley but also enhanced our understanding of the South Big Smokey basin to develop future exploration plans. Our next challenge is to drill deep enough to intersect all potential brine bearing targets identified in geophysical and geological data collected so far. To accomplish this goal, the Company has planned to execute a drill program on the Property which will be announced soon.
Click here for the full press release.
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Oakridge Global Energy Solutions (OTCMKTS:OGES) announced a Strategic Business Alliance Agreement with Sojitz Machinery Corporation of Tokyo, Japan to provide equipment, materials, and financing to support the planned growth of Oakridge in the lithium ion battery market.
As quoted in the press release:
Sojitz Group is a general trading company based in Tokyo, Japan, with a worldwide network comprising approximately 400 group companies and operations in 50 countries, including the US. The Group has over 15,000 employees worldwide, and has a long international history, tracing its origins back to the late 19th century, resulting from the merger of Nichimen Corporation (1892), Iwai Sangyo Company (1896) and Nissho Company (1902), to form Sojitz Corporation in 2005.
Sojitz Corporation is publicly traded on the Tokyo Stock Exchange (27680, Sojitz Corporation) with annual revenues exceeding $35 billion USD, with a credit rating of BBB+ .
Oakridge Global Energy Solutions Executive Chairman and CEO, Steve Barber, stated:
We at Oakridge regard our relationship with Sojitz as highly important because of the high profile global presence that Sojitz has in all the many business divisions listed above, its vast experience in the worldwide equipment and materials supply markets, and it immense network of relationships within the global lithium battery sector, not to mention its high reputation for integrity globally in all its dealings. We are excited and honored to be working with one of the leading Japanese trading houses as we work together with Sojitz on a long-term basis to grow our battery business and fulfil our strategic growth objectives to be THE “Made in USA” lithium ion battery producer.
At Oakridge, we strive to align ourselves with the leaders in industry from suppliers to customers to business partners. Our relationship with Sojitz Machinery Corporation is further testament to this philosophy as Sojitz Group is a leading global organization of the highest standards, and with an experienced, dynamic and well-connected team. There is a lot of synergy between our two companies and we look forward to a mutually beneficial relationship as we move forward over the coming years.
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Nevada Sunrise Gold Corporation (TSXV:NEV) announced it has entered into an agreement with 1065604 BC Ltd., a private British Columbia company, for an option to earn an undivided 80% interest in the Atlantis lithium property located in the Fish Lake Valley in Esmeralda County, Nevada.
Atlantis is comprised of unpatented placer claims and placer association claims totalling 2,882 acres (1,166 hectares) located approximately 25 miles (38 kilometres) northwest of the Silver Peak lithium brine mine operated by Albemarle Corporation (ALB: NYSE), the only operating lithium mine in North America.
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Peninsula Energy (ASX:PEN) announced that it had added its fifth long term uranium concentrate sale and purchase contract to its supply agreements. The Company is pleased to provide an update on the benefit that the totality of these sale contracts contribute to building a global, sustainable, low-cost uranium concentrate producer.
As quoted in the press release:
The fifth long term contract signed by Peninsula is for delivery of 4.0 million pounds of U3O8 over a 10-year period commencing at the end of 2020. This agreement also contemplates increasing the quantity to 50% of annual Lance production from 2026 onwards. Terms relating to the increased quantities are to be negotiated in 2022 when prevailing market conditions are forecast to be more favourable for producers.
Peninsula has 7.9 million pounds of U3O8 under contract for delivery to major utilities located in the United States and Europe. Projected revenue under these existing long term contracts now exceeds US$440,000,000.
These contracts provide a substantial earnings stream to the Company whilst allowing it to retain significant quantities of planned U3O8 production for future contracting during periods of anticipated improvement in uranium prices.
Peninsula Energy Managing Director and CEO, Gus Simpson, stated:
Over the past five years Peninsula has been focussed on demonstrating to United States and European utilities its capacity to become a reliable long term supplier of uranium. The establishment of good relations with end-users has provided a significant long term revenue stream that underpins the Company’s development in the short term and provides a solid basis for its long term growth.
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At this year’s Prospectors & Developers Association of Canada conference (PDAC), Jon Hykawy of Stormcrow Capital provided a brief overview of the critical materials involved in the lithium-ion battery supply chain.
During his talk, he covered everything from the basics of how lithium batteries work to the different types of lithium-ion batteries, to how growing battery demand is affecting the outlooks for various metals.
Certainly, the overall theme of the talk fell in line with what investors have been hearing lately. Demand for lithium-ion batteries is growing quickly, and so is demand for the lithium (and other critical metals) used to make them. However, Hykawy provided a bit more background for that argument, suggesting that lithium supply and demand will only remain balanced under ideal conditions.
Here are a few highlights of what he had to say.
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Lithium demand is currently sitting at about 200,000 tonnes, and Hykawy estimates that if current suppliers were producing at 100 percent of their capacity, supply would stand at roughly 231,000 tonnes.
So why are prices going crazy? “There are some issues with respect to the supply situation in lithium in China,” Hykawy explained, “or the dynamic within the lithium industry within China, which is why, at Battery Japan recently, there were some Chinese buyers trying to find contracts for delivery of certain lithium materials at prices as high as $30,000 a tonne.”
That situation is exclusive to China, but prices have certainly risen markedly for the rest of the world as well as of late.
Looking ahead to 2025, Stormcrow is projecting demand in excess of 400,000 tonnes, with totally supply expected to sit around 425,000 tonnes. That might sound like good news, but as Hykawy noted, “that’s not a big margin of error.”
“There should be some concern about potential lithium supply,” he said.
Of course, whether or not lithium producers will be able to keep up with demand is a key question for those interested in the market. But that can be difficult to predict, since, like other mining companies, lithium producers can be overly optimistic about their projections.
“One way obviously to find out what [a company] can make is to read their literature and determine what they say they can make,” Hykawy stated. “Another is actually to look at their production numbers over the course of years and try and determine what their capacities really are.”
For its part, Stormcrow is expecting a number of new supply sources to come online:
If all of those projections come to fruition, then the market should be in a “perfect supply balance” through 2025.
“That’s a precarious position, having to depend on everyone to get everything right in terms of timing and production and not having any problems occurring year in, year out,” Hykawy said. “It hasn’t happened so far, and you can disagree, but it’s probably not going to happen here.”
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Finally, Hykawy briefly touched on some of Stormcrow’s pricing predictions for lithium.
First, he stressed that lithium prices are difficult to accurately predict based on how fast they are increasing. “They’re rising beyond historical levels relatively quickly,” he explained. “That means you’ve got a statistical model [which means you’re using] extrapolation, and extrapolation is a recipe for error.”
Still, there’s a clear general direction in which lithium prices are heading, and that’s up. “Admittedly, all I can tell you is [that] prices are likely to go in the direction that we’re indicating,” Hykawy said. “If supply doesn’t come on in a particular year, if something is delayed, if there are other factors that increase demand more rapidly than we were projecting, those prices are going to move accordingly.”
More specifically, Stormcrow sees prices for battery-grade lithium carbonate staying around $6,000 per tonne this year. “Now there are some indications that battery-grade carbonate is already above that,” he added. “We think obviously new supply will help bring that down, but we see, moving forwards, prices at $10,000 by 2025.”
For lithium hydroxide, Hykawy stated that “a $7,000, $8,000 price outside of China is not insane at this point,” and that prices could hit $15,000 per tonne moving towards 2025. And, as mentioned above, there were contracts for the material floating around at Battery Japan priced in excess of $20,000 to $30,000.
Interestingly, Hykawy said that skyrocketing prices and a precarious supply/demand balance are not necessarily a bad thing. “If a material is in short supply, [users] have to pay up,” he said. What’s more, he explained that the cost of lithium within a battery is relatively small overall, coming in at “single-digit percentage points typically, based on the chemistry.”
Similarly, Joe Lowry of Global Lithium states in an update on the lithium market that he “[does] not hear much concern about the ~3X price increase” for lithium; rather, the most common themes are “bullishness regarding demand growth and a concern over inadequate lithium supply.”
In any case, Hykawy’s presentation reaffirmed what many lithium market watchers already know: the world is going to need a lot more lithium to meet its growing energy needs.
“Lithium production has to increase,” Hykawy said. “There isn’t any question about that.”
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Galaxy Resources and Nemaska Lithium are clients of the Investing News Network. This article is not paid-for content.
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The Australian Federal Government has supported Lithium Australia NL (ASX:LIT) as the Company moves to commercialise its Sileach™ process for recovering metals, lithium in particular, from silicate minerals.
As quoted in the press release:
The Government has granted Perth-based Lithium Australia an Innovations Connections Grant under the Entrepreneur’s Programme run by the Department of Industry and Science.
Under the terms of the grant, LIT will partner with ANSTO Minerals (a division of the Australian Nuclear Science and Technology Organisation). The initial program will focus on the application of Lithium Australia’s Sileach™ process to aid the recovery of lithium from micas. The Sileach™ process is designed to recover lithium from silicates without the expensive roasting step that has long been the main stay of the lithium recovery process.
Lithium Australia NL Managing Director, Adrian Griffin, stated:
Lithium Australia’s Sileach™ process has the potential to catapult Australia into the forefront of the lithium battery boom by supplying optimal grade and purity material from low-energy production of lithium chemicals. These can be produced from a range of minerals including spodumene and mica. We welcome the Federal and WA Government’s support to be innovative, and this “ideas boom” ideally suits our project development goals.
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A recently report by Blue Ocean Equities highlighted Pilbara Minerals Limited (ASX:PLS) recently announced PFS results for the Pilgangoora Lithium-Tantalite Project in Western Australia.
As quoted from the report:
The PFS for Pilgangoora very much galvanised our view that PLS is on track to become the go-to name in the ASX lithium space. The PFS envisages a 2mtpa project producing 330ktpa of spodumene for an initial 15 years for capex of A$184m. Project economics are very robust with 54% EBITDA margins, a 2.2 year payback and 44% IRR at conservative prices of US$456/t, 24% below current price of US$600/t. PLS remains our top pick in the ASX lithium space.
While the PFS is very robust, we see substantial upside potential on both spodumene prices and mine life. The PFS reserve is 29.5mt only a fraction of the 80mt resource (and ~105mt Exploration Target). The company is targeting a mining inventory of ~54mt in the DFS, which would increase the mine life to 27 years and open the door to a potential expansion to 3mpta (in due course).
Given the sheer scale advantage of the Pilgangoora resource compared to its ASX spodumene peers, PLS’s low-risk jurisdiction in WA, and the lower technical risks associated with spodumene projects (compared to their brine counterparts), we believe Pilbara Minerals is likely to have superior appeal with global institutional investors.
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